AUD/USD: Looking at the 0.6706 resistance to open upside potential – Credit Suisse

AUD/USD has pushed higher to test of 0.6659/6706, a pivotal resistance area comprising of the 200-day average, the March high, and 78.6% retracement, which is ideally capping, per Credit Suisse. 

Key quotes

“We look for the 0.6659/6706 area to cap and see weakness taking over again in due course. With this in mind, we see support initially at 0.6610, then 0.6538, ahead of the late May lows and 21-day exponential average at 0.6507/06, where we would expect to see fresh buying at first.” 

“A closing break above 0.6706 would mark a break of a major barrier and turn the medium-term risks to the upside, with resistance thereafter at 0.6745/50, ahead of the February high at 0.6774. This though is not our base case.”